(27 March 2020)DAILY MARKET BRIEF 1: A dead cat bounce or a sustainable recovery?

<p>The jobless claims in the US rose past the 3 million mark last week, a sign that the covid-19 has started taking a severe toll on the US labour market and the US now has the most coronavirus cases in the world, hinting that the situation is about to get worse in the coming weeks.</p>
<p>But bad news was good news for the market. The US stocks indices rallied for a third consecutive day on hope that the tragic data would encourage the House of Representatives to approve the $2 trillion rescue package quickly. A vote is due today. House Speaker Nancy Pelosi said that the package will be approved with an overwhelming majority.</p>
<p>The Federal Reserve (Fed) Chair Jerome Powell on the other hand said that the Fed ‘will not run out of ammunition’ and will continue supporting the economy if more stimulus is needed.</p>